Norges Bank Investment Management, the entity managing Norway’s sovereign wealth fund, has finalized a deal to acquire a 49% interest in a substantial 644 MW portfolio of solar plants in Spain, for a total investment of 203 million euros. This transaction places the overall valuation of the portfolio at approximately 414 million euros, with no external debt financing involved.

Partnership Expansion with Iberdrola

The seller, Iberdrola, a major player in the global energy market, will retain a 51% stake and continue to operate the portfolio. This deal is an expansion of the previous acquisition from Iberdrola, which included two solar plants and two onshore wind farms in Spain and Portugal. The current portfolio comprises two projects: one operational and another under development, expected to be completed in 2025. Norges Bank Investment Management will take ownership once the latter project becomes operational.

Strengthening Iberian Renewable Energy Alliance

This transaction marks a significant enhancement in the collaborative clean energy initiative between Iberdrola and Norges Bank Investment Management in the Iberian Peninsula. With this latest agreement, the total capacity under development in their alliance now reaches approximately 2,500 MW, focusing on solar PV technology in regions like Extremadura and Castilla y León.

Environmental Impact and Strategic Implications

The operational capacity of these solar projects can power about 400,000 homes annually, offsetting more than 350,000 tons of CO2 each year. This initiative is part of a broader strategy by both companies to accelerate decarbonization in the region and potentially expand their renewable energy efforts to other countries.

Norges Bank’s Global Renewable Investments

Norges Bank Investment Management, with assets under management of around €1.4 trillion and stakes in over 9,000 companies worldwide, is significantly expanding its footprint in the renewable energy sector. This investment in Spanish solar assets marks its first direct renewable investment in Spain, aligning with its long-term environmental and financial goals.

Long-Term Strategic Alliances and Decarbonization Efforts

This acquisition is part of a series of strategic moves by Iberdrola to foster long-term partnerships aimed at promoting decarbonization globally. Other recent alliances include collaborations with companies like Masdar, GIC, BP, MAPFRE, and Energy Infrastructure Partners, covering various projects from offshore wind farms to electric vehicle charging infrastructure.

  decarbonization strategies, Iberdrola, Iberdrola renewable energy, Norges Bank Investment Management, Norges Bank solar investment, Renewable Energy Investment, Spain, Spanish solar energy projects